First Class Metals plc has secured new interest-free convertible loan note for up to £1 million with an international investor.
WARRANTS
The financing, agreed at the end of January, will fund inaugural drilling on the Sunbeam gold property in Ontario, Canada as well as general working capital.
The interest-free convertible loan notes are of £1 each and will be issued in tranches, with the first tranche of £350,000 expected to be drawn shortly.
For each tranche, the investor receives three-year warrants equal to 35% of the CLN comprising the tranche, with a maximum of 350,000 warrants for the one million loan notes.
The subscription price for each warrant is 120% of the closing price of an ordinary share on the business day immediately preceding the day of the subscription of the tranche.
For the subscription of the first tranche, First Class will issue 4,803,922 warrants exercisable at 2.55 pence per share.
The company said it also aimed to pay the final CAD$100,000 due to the option holders of the Kerrs gold property, located in the Timmins mining camp, to complete its 100% ownership.
First Class holds a number of polymetal projects in Ontario.